Jeff Knight

BTL and PRS could be stimulated by stamp duty U-turn

Some 51% of landlords believe that future government U-turns on both stamp duty increases on additional property and cuts to mortgage interest tax relief could stimulate the BTL and private rental sectors, according to the latest research.

The study by Foundation Home Loans revealed that 22% of landlords thought that staying in the EU would boost confidence in the sector, while 14% felt that securing the UK’s withdrawal from the EU would be the most beneficial.

Other highlights from the research included:

  • four in 10 landlords said they were still willing to invest in property despite the current market conditions
  • 50% of landlords felt they would probably not want to make a first investment now due to government intervention, regulatory changes, economic uncertainty and a lack of returns
  • only one in four said they intended to increase rents over the next 12 months

“There is a continued appetite to be active in this sector and a recognition of the strong demand for quality properties from tenants,” said Jeff Knight, director of marketing at Foundation Home Loans (pictured above).

“That being the case, we might anticipate that demand for mortgage advice and BTL mortgages will continue to grow, although many are clearly worried about the current economic uncertainty and what might happen in a post-Brexit world.”

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